This month, the website at WSJPrimeRate.us is celebrating two years of providing the global Internet community with high quality information about the U.S. Prime Rate. The publishers of the website are marking the milestone by merging the Prime Rate website with the LIBOR.ws and FedFundsRate.info sites. The WSJPrimeRate.us website has grown considerably over the last two years, and is fast becoming the Internet's most comprehensive and user-friendly website about interest rates.
The U.S. Prime Rate is a financial market index used in the banking system of the United States as a foundation or base rate for many types of short-term loans and variable-rate credit cards. The U.S. Prime Rate is invariably 300 basis points (3.0 percentage points) above the Fed Funds Target Rate.
Set by the Federal Open Market Committee (FOMC) of the Federal Reserve, the Fed Funds Target Rate is America's most important benchmark interest rate. It is the rate at which American banks borrow overnight funds from other American banks, via the Federal Reserve. The FOMC uses the Fed Funds Target Rate to regulate the U.S. economy, lowering it when the economy needs a boost, and raising it when the rate of inflation is too high.
The London Interbank Offered Rates, or LIBOR, are rates which are set every business day by the British Bankers' Association (BBA) and are used for pricing loans and other financial market instruments all over the world. In the United States, a handful of dollar-denominated LIBOR rates -- specifically the 1-, 3-, 6- and 12-month rates -- are used in the pricing of select loan products, including certain adjustable-rate mortgages and a small percentage of credit cards.
"We've been busy since the site was founded back in late 2005," said Steve Brown, content manager at WSJPrimeRate.us. "We've been adding lots of great content and new features, and we're going to keep adding value over time. The folding of the LIBOR and Fed Funds sites into the Prime Rate site brings us two steps closer to becoming the 'Net's premier information source about interest rates.
"Website regulars have let us know how much they appreciate the prime rate forecasts in the site's unique blog. The predictions posted in the website's blog are remarkably reliable, and very popular, which makes sense because when it comes to borrowing money for a major purchase, timing can mean the difference between getting a favorable interest rate and getting an inferior one -- inferior meaning costly, of course.
"It's a critical time for the U.S. economy, so it's important for consumers to pay close attention to where short-term interest rates are headed. The economy isn't doing too bad right now, but consumer confidence has been declining since the summer, which could impact consumer spending. The credit crunch is still on, and the American housing market probably won't improve in a significant way until late next year. The Fed has been cutting rates since mid-September, and may continue doing so into 2008. Lower interest rates is good news for consumers who are carrying or plan to go into debt. On the other hand, for folks with money in the bank, lower rates means lower returns on savings and certificates of deposit, so everyone needs to pay attention," Brown added.
The Prime Rate site also includes a page devoted to non-U.S. prime interest rates, enlightening articles, a free mortgage calculator, current and historical housing prices, various charts, a frequently asked questions (FAQ) page and an email page that anyone can use to quickly and easily email the publishers with any questions or comments.
About WSJPrimeRate.us
The WSJPrimeRate.us site is a popular Internet destination where visitors can find information about the U.S. Prime Rate, as well as data on prime interest rates from other industrialized nations, and other useful financial market data.